The Daily Rundown

SMB News Daily Rundown: Update for July 27

Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.

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Small Business News Highlights for July 27: 

  • Republican proposal would cut federal benefit unemployment by $400
  • Small business struggle to keep up with Coronavirus-related expenses 
  • California considering changing labor laws in light of pandemic 

Republican proposal cuts federal unemployment benefits to $200

“We want to sit down and negotiate. But you can’t negotiate with a ghost.”

Federal unemployment benefits and the moratorium on evicts expire this week. Republican lawmakers are set to unveil their proposal for the newest round of stimulus funding, which reportedly includes cutting unemployment benefits to $200 per week. This figure is supposed to help jobless Americans receive roughly 70% of their weekly pre-pandemic income, with state benefits making up the other half portion, and is designed to serve as a bridge as states revamp their own systems. The proposal is also expected to include another round of direct cash payments to households.

The House of Representatives already passed an ambitious bill worth $3 trillion, however the Republican proposal is expected to come in around $1 trillion and focus on a narrower agenda.  

Republicans and Democrats are scheduled to sit down and begin negotiations in earnest this evening. 

Small businesses struggle to keep up with COVID-related expenses

“I’ve spent all that money, and guess what — I still can’t work.”

Little money is coming in, yet small business owners are seeing the small amount of cash they do have eaten up by the added costs associated with doing business during the age of coronavirus.

Expenses such as plexiglass barriers, outdoor tables and partitioning, delivery, signs, websites and e-commerce rapidly deplete any revenue or savings that small businesses owners have access to. And unfortunately for many, investments in these safety-related expenses haven’t necessarily paid off as many locations tighten restrictions instead of easing them as hoped. 

California considering changing labor laws

“The reality is that we will come back to a different society, a different economy and a different definition of workplaces when this is over.” 

While federal lawmakers are hashing out the best way to support American workers, California state lawmakers are having similar discussions of their own. 

Governor Gavin Newsom and state legislators are considering the changing nature of work and the workplace and looking for ways to adapt state labor laws accordingly. According to the governor, he will work closely with lawmakers to expand state unemployment benefits, provide COVID-19 related paid sick leave, enforce work protection laws and ensure that employers are reporting outbreaks appropriately. 

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